An investment will generate profit, t years from now, at the rate of f (t) = 15000 + 1000
Question: Problem 5.
An investment will generate profit, t years from now, at the rate of f (t) = 15000 + 1000t dollars per year. If the profit is generated in perpetuity and the prevailing annual interest rate remains fixed at 6% compounded continuously, what is the present value of the investment?
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Solution Format: Word Document
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